VIB Vermögen AG focuses on growth with further mandatory convertible bond(PresseBox) (Neuburg an der Donau, )
- EUR 25.6 million placed among institutional investors
- Mandatory convertible bond to be listed on Frankfurt Stock Exchange's Quotation Board from November 28, 2013
- Issue proceeds serve to realise investment pipeline for further corporate growth
VIB Vermögen AG, a company specialising in commercial real estate portfolio management, is continuing to focus on sustainable growth on attractive financing terms. To this end, the company is issuing a EUR 25.6 million mandatory convertible bond for which institutional investors have subscribed in a private placing. The two-year bond carries an attractive 4.5% p.a. coupon, and is denominated in bonds of EUR 1,000 each. The mandatory convertible bond will be listed in the Quotation Board of the Frankfurt Stock Exchange (ISIN DE000A1YCQ52, WKN A1YCQ5) from November 28, 2013.
Holger Pilgenröther, CFO of VIB Vermögen AG, is very satisfied with the deal's success: "Demand this time was higher than for our first issue almost one year ago. Investors particularly appreciate our business model's sustainable cash flow strength, which makes the mandatory convertible bond attractive. At the same time, we also further broadened our investor base as a result of this step." Pilgenröther emphasises the benefits of this type of financing for VIB Vermögen AG: "With the proceeds we can acquire commercial properties with above-average rental returns, while at the same time enjoying long-term favourable refinancing costs and a strengthened equity base."
The company aims to invest the issue proceeds in further high-yielding properties, thereby continuing on its successful growth path. Ludwig Schlosser, CEO of VIB Vermögen AG, indicated a well-filled project pipeline: "We have just expanded our portfolio to include a new MAN service station in Neuss, and we have also announced our investment in a further MAN service station in Freiburg. We are currently examining properties and development projects with a volume of up to EUR 60 million. We are already in specific negotiations in the case of some promising properties. For this reason, we are very confident that we can rapidly reinvest these issue proceeds, thereby generating additional rental income."
Subscription rights for existing shareholders were excluded. Given a EUR 12.00 conversion price, investors have two conversion windows: the first comprises the period between July 7, 2014 and November 27, 2014, and the second the period between the third calendar day following the company's Annual General Meeting in 2015, and the bond's maturity date on November 27, 2015. Conversion will generate a total of 2,136,000 new shares that will be dividend-entitled from January 1 of the respective conversion year.
The transaction was supported by the Baader Bank and Kreissparkasse Biberach as joint lead manager and joint bookrunner.